Business, international

At China's National People's Congress in 1996 Beijing promised to prop up ailing state enterprises with 1.4 trillion renminbi, or two-thirds of all fixed-asset investment, in its new budget. Soon the govt will have to choose between cutting off these funds or lowering the standards still further on social services. China's deficit climbed 31% in 1995 and will grow 26% more in 1996, while the total repayment burden will reach 133 billion renminbi. It plans to raise the money with treasury bonds on the domestic market.

Asia's free ride

Article Abstract:

Asian govts concerned about traffic congestion should address car use, not only ownership, in their quest for a solution. Ownership restrictions are notoriously ineffective and ignore the needs that car ownership satisfies. Singapore is experimenting with electronic road taxation and extra fees to drive into congested areas. Better parking at public-transit stations and car-poll incentives would help, as would improved public transit and cheaper parking outside cities.